Is RTO relevant? Why ‘butts in seats’ don’t necessarily equate to business success
Deep into their campaign to get employees in the office, corporate leaders can sit back, look around those packed cubicles, and enjoy the resulting productivity and profits, right?
Maybe in their dreams.
In the ongoing debate over whether RTO trumps remote work when it comes to organizational performance, new data from McKinsey reinforces the long-held argument that location has a lot less to do with it than many bosses may think it does.
In a survey of more than 8,000 employees across a range of industries in the U.S., McKinsey found that it is people’s work experience that needs an overhaul, regardless of where they plug in.
“The policy mandate itself is far less important than the work environment organizations create and the practices that accompany a policy’s implementation,” the study determined. “Companies that hope to reach their stated organizational effectiveness goals should look beyond RTO policies themselves to address the chronic problems that continue to take a toll on employee experience and productivity.”
Independent of working mode, employees suggest their companies do a weak job of supporting the core practices that drive performance and make organizations stronger — namely, collaboration, connectivity, innovation, mentorship and skills development. As it happens, those are the same outcomes business leaders say they want to see.
Meanwhile, worker apathy abounds. A survey of more than 1,100 employees by the career site MyPerfectResume found that about 8 in 10 people feel detached from their work due to reasons ranging from subpar pay and a lack of work-life balance to bad management. More than 4 in 10 workers report often feeling lonely on the job, with a majority revealing that isolation hurts their productivity.
“We believe that regardless of a company’s working location policy, employees will not perform at their highest level if they are not satisfied with their core work practices,” said Traci Pesch, practice lead and strategist at the employee recognition program Workhuman, whose research over the past several years has pointed to a disconnect between working location and performance.
Pesch suggests that rather than mandate RTO, business leaders would do well to turn the focus to reenergizing and motivating their people.
“The push for return-to-office policies is exposing a deeper issue that extends beyond physical location,” said Brooke Page-Thompson, president of Velocity Advisory Group, a business consultancy. “Employees need purpose, clarity and alignment with their organization to remain engaged and productive.”
Some employers are taking a more nuanced approach. Take Citigroup, which has chosen to stick with its hybrid arrangement as CEO Jane Fraser stresses that flexibility isn’t just a perk, it’s a competitive edge. Rather than focus on “butts in seats,” Citi is investing $1.2 billion reimagining its U.K. headquarters as an employee-friendly space that supports collaboration and culture.
“The reality is that employees, regardless of location, crave meaningful work, growth opportunities and a sense of connection,” said Larry Durham, president of St. Charles Consulting Group, a business consultancy. “If those elements are missing, no number of in-person meetings will drive engagement or performance.”
Workplace experts advise people managers to focus on three key areas:
Prioritizing genuine skill development and career growth. As Durham notes, employees don’t just want to do their current job well — they want a path forward. That means creating structured mentorship programs and clear career mobility opportunities, independent of location.
Fostering purposeful collaboration. Instead of assuming that packing offices will spark innovation, leaders should create intentional opportunities for meaningful connections. That could mean project-based collaboration models that bring the right people together or AI-driven talent marketplaces that match employees with high-impact work.
Rethinking the entire workplace experience. Employers may want to take a cue from Citi, which is investing in radically redesigning what work looks like. “Companies that hope to reach their stated organizational effectiveness goals should look beyond RTO policies themselves to address the chronic problems that continue to take a toll on employee experience and productivity,” the McKinsey report stated.
And in reimagining the workplace, employers don’t have to spend a billion bucks on fancy headquarters or endless perks. As Page-Thompson puts it: “People don’t need coffee bars or catered lunches; they need to understand how this change will bring greater clarity and purpose to their work.”